Anshu Jain Will Get to Run Deutsche Bank With A Little Unobtrusive German Supervision

Author:
Updated:
Original:

When we last checked in with Anshu Jain, Deutsche Bank's head of corporate and investment banking, there were rumors that, despite rave reviews from the likes of Larry Fink and other DB shareholders, he might be passed over for the job of CEO at Deutsche for being (1) not German and (2) "a bond and derivatives technician at a time when the practices of all major banks are still being scrutinized."

Fortunately for Jain, Deutsche Bank has come partially to its senses and named him to succeed CEO Josef Ackermann, who will step down in 2012. But to preserve DB's Teutonic je ne sais quoi, Jain will have some homeland supervision:

The bank has resorted to a dual CEO structure, despite the potential for conflict and even power struggle between the two, because handing the reins to Mr. Jain alone is seen as too much of a culture shock, according to people familiar with the matter.

His co-CEO is 62-year-old Jürgen Fitschen, who "is expected to manage the bank's corporate, public and political relationships in Germany" while 48-year-old AJ runs operations and strategy. But Fitschen can only do so much to shield any slackers in Frankfurt from the coming changes:

After a 16-year waiting game, Mr. Jain is expected to come in and shake up the status quo, imposing a demanding, performance-driven culture in the staid German areas of the operation, according to people familiar with the matter.

Deutsche Names Two as Co-CEOs [WSJ]

Related

Germans Still Not So Sure About This Anshu Jain Guy

Tomorrow morning, Anshu Jain will start his new job as co-CEO of Deutsche Bank. Despite having previously overseen operations that produce 90 percent of the firm's profits in any given quarter, sitting on the management committee, and generally being considered a "star" both within the company and among those who follow his work, chief executive officer is a title no one thought AJ would be given if he remained at DB, because 1) people back in Germany don't like that he's an investment banker and 2) "In Germany, no one can imagine an Indian working in London who does not speak German being CEO of Deutsche Bank." To the haters' chagrin, though, that's exactly what's about to happen. And if they want to continue bitching about it, they can be Jain's guest-- their insults go in one ear and out the other. While Mr. Jain has taken German lessons, he doesn't speak the language, and Der Spiegel, the country's best-selling weekly magazine, ran a 12-page cover story earlier this year laying much of the blame for Deutsche Bank's troubles at Mr. Jain's feet. Jain Takes The Reigns At Deutsche [WSJ]

Layoffs Watch '12: Deutsche Bank

The Germans thought about it and decided yes, layoffs sound like a great idea. Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today. The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today...“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.” Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]